The European Commission has adopted a decision under EC Treaty
competition rules that renders commitments from the FA Premier League concerning
the sale of media rights to the Premier League football competition legally
binding. The case concerned the agreement between the clubs participating in the
English Premier League competition to sell media rights to that competition
jointly through the FA Premier League. These commitments, which will remain in
force until 30 June 2013, will increase the availability of media rights, and
improve the prospects of competition in providing services to
consumers.

Competition Commissioner Neelie Kroes commented: “The solution we have
reached will benefit football fans while allowing the Premier League to maintain
its timetable for the sale of its rights.”

The Commission sent a Statement of Objections on this case in December 2002
(see IP/02/1951).
The Statement of Objections recognised that there are in principle benefits to
joint selling to football fans and media operators as well as to the clubs of
the Premier League. However the Commission raised concerns that in practice the
FAPL’s implementation of the joint selling agreement deprived media
operators and British football fans of choice, led to higher prices and reduced
innovation. The FAPL submitted provisional commitments to the Commission in
December 2003, which included a commitment that no single broadcaster would be
allowed to buy all of the packages of live match rights from 2007 onwards (see
IP/03/1748).
These commitments were the subject of a public consultation, following which the
Commission sought clarifications from the FAPL concerning the adequacy and
detail of the provisional commitments. These clarifications were obtained in
November 2005 (see (IP/05/1441).

This Commission decision, based on Article 9 of the procedural Regulation
(1/2003) for the implementation of EC Treaty competition rules, takes into
account the result of consultations on the commitments offered by the FAPL. The
clarified commitments inter alia specify the precise terms of the no
single buyer rule and the conduct of the auction process; create more evenly
balanced packages of rights; and increase the availability of rights to
broadcast via mobile phones.

The commitments offered by the FA Premier League therefore provide for more
rights, including television, mobile and internet rights to be made available
and ensure that the rights are sold in an open and competitive bidding process
subject to scrutiny by an independent Trustee. The live television rights will
be sold in six packages – both smaller and more balanced than previously -
and no one buyer will be allowed to buy more than five. The commitments also
enhance the scope for individual clubs to exploit rights that are not sold by
FAPL or used by the purchaser.

This decision addresses the agreement between the Premier League clubs to
sell their rights jointly through the FAPL. The decision is binding on the FAPL
for the duration of the Commitments, but does not bind national competition
authorities or national courts. The decision does not address issues which may
arise from contracts concluded as a result of the sales process: if these
contracts give rise to competition issues, then they would require a separate
assessment under the competition rules either at European or, more likely
following Regulation1/2003, national level.

The Commission’s commitment decision covers will be binding upon the FA
Premier League until 30 June 2013. The Commission could impose a fine amounting
to 10% of the FA Premier League’s total worldwide turnover if it breaks
its commitments without having to prove any violation of the EC Treaty’s
competition rules.